The Waves/Ethereum pair (WAVES/ETH) launched its bull run on December 4, 2017 when it rallied above resistance of 0.014. The breakout attracted so much momentum that the pair quickly went into a parabolic state. The supercharged velocity propelled the market to as high as 0.02540999 on December 12. In about a week, WAVES/ETH rose by 81.5%.
At this point, those who bought the breakout took profits as seen in the long wicks above the candle’s body. Even though the pair tried to stay above 0.02 support, the lack of a solid base above 0.014 was a significant reason why the pair struggled to keep the ascent sustainable.
When the pair broke the 0.020 support on December 25, it triggered a massive selling frenzy. The pair plummeted to 0.00600889 on February 1, 2018 before it could find some resemblance of stability. Fortunately for buyers at this level, WAVES/ETH began to gather bullish steam. Now, it looks ready to start another uptrend.
Technical analysis show that WAVES/ETH is poised to finally take out resistance of 0.01. The move would trigger the cup and handle reversal on the daily chart.
To complete the breakout, the market needs to generate volume of at least 30,000 units of Waves. Those who bought above 0.01 on April 29 are likely to cut their positions at the next rally to minimize losses. The pair needs buyers to absorb the selling pressure.
The strategy is to buy the breakout at 0.01 as long as the required volume is met. Once bulls claim 0.01, the market may explode to our target of 0.014.
The process may take less than a month.
Daily Chart of WAVES/ETH on Bittrex
As of this writing, the Waves/Ethereum pair is trading at 0.00887465 on Bittrex.
Summary of Strategy
Buy: Breakout at 0.01 after the pair prints volume of 30,000 Waves units.
Stop: 0.0095 after the breakout.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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